Is it possible for Blender to interface with other software and hardware?
There's quite a few ways to do this, depending on your hardware. If you're using an Arduino that has wireless communication with your sensors, you can plug the Arduino to a PC running blender via USB and send data over serial communication.

A blender python script can access the serial data and use it to do whatever you want it to do (for instance control a character rig). Here's some more sample code on how to use the python serial (pyserial) library.

That's just one way related to one type of controller. If you specify more about what you're aiming for and what tools you're going to use, people will be able to provide you with better, more specific answers.